What is the digital RMB coming? How do you implement the dual offline payment technology?

“As long as you and I both have digital wallets with digital RMB on our phones, then we don’t even need the internet, as long as our phones have power, and the two phones touch, we can transfer the digital currency from one person’s digital wallet to the other.”

Isn’t that amazing? We’re used to all kinds of internet connectivity, doesn’t this offline payment technology feel quite advanced?

Recently the Shenzhen Municipal People’s Government joined the People’s Bank of China to carry out a digital RMB red packet pilot. As a technical person would like to know how to implement dual offline payments, and would also like to know who this digital RMB is.

What is the digital RMB?
What is the difference between digital RMB and e-wallets like Alipay and WeChat?
What is the principle of the dual offline payment technology that the digital RMB will eventually implement? What’s the high tech?
Dual offline payment scenarios and principles
Are digital RMB bumper-to-bumper payments safe? Would some random person touch my phone with it and steal my money?
Do you pay directly when your phone is touched?
Is there a similar case for dual offline technology?

I. What is the digital RMB?

Digital RMB is issued by the People’s Bank of China and is a legal tender with a national credit endorsement and legal solvency.

Compared to virtual currencies such as Bitcoin, digital RMB is fiat currency, equivalent in value to legal tender, with the highest potency and security, while Bitcoin is a virtual asset with no basis of value, and does not enjoy any sovereign credit guarantee to guarantee value stability. This is the most fundamental difference between central bank digital currency and cryptographic assets such as Bitcoin.

  1. dual offline payments. Achieving like paper money to meet the electronic payment needs of airplanes, cruise ships, underground parking lots and other places with poor network signals.
  2. higher security. If theft, etc. does occur, for real name wallets, digital RMB can provide a lost function.
  3. multiple terminal options. People who don’t want to use or can’t afford to use smartphones can choose IC cards, feature phones or other hardware.
  4. multi-information intensity. The digital RMB wallets are divided into several levels based on the intensity of information held about the customer. If large payments or transfers are made, they must be made through a real-name wallet with high information intensity.

5.Point-to-Point Delivery. Through digital currency smart contracts, point-to-person delivery can be achieved. Livelihood funds can be disbursed to the people’s digital wallets, thus eliminating the possibility of fraudulent claims and misappropriation.

What is the difference between digital RMB and electronic wallets such as Alipay and WeChat?

The first point is that digital renminbi is legal tender and cannot be refused by any institution or individual, while WeChat Pay and Alipay are just one form of payment.

For example, if you’re paying for a purchase at the mall, do you think you can pay with WeChat? The store owner told you no, I only support Alipay here, you can’t do anything about it. But you pay with digital RMB is different, if the shopkeeper does not accept, you can directly call the police.

The second point, Alipay, WeChat Pay and other third-party Internet payments need devices to connect to the network to settle, but the digital RMB can double offline. In other words, as long as the phone has power, even if the entire network is cut off digital RMB can also be achieved to pay.

PS: Now Alipay and other technologies, in fact, can achieve single offline technology, that is, the phone does not have a network signal, the consumption terminal networked, in fact, can be consumed, and consumption is completed, will be deferred settlement, and so after networking, there will be SMS messages to notify you of the consumption of success. But this must ensure that the consumer terminal is networked.

The third point, Alipay, WeChat payment and other third-party Internet payment belongs to the commercial bank deposit currency settlement, and digital RMB belongs to the cash in circulation. In simple terms, the use of central bank digital currency payment, spend out the digital RMB, the same as spending cash; and Alipay, WeChat Pay is just a payment tool, through these two channels, spend is your bank card balance, or brush is a credit card.

Third, what is the technical principle of the dual offline payment technology that the digital RMB eventually realizes? What’s the high tech?

That’s the most amazing thing to me, how do you secure the digital RMB through dual offline technology?

In fact, the function of offline payment is not new, WeChat and Alipay have already been implemented, which allows us to “enjoy first and pay later” in some scenarios. But this kind of offline payment generally can only let the payer offline, and the payee must be online, and the offline payment information to the platform server side for verification. DC/EP’s “dual offline payment” is how to achieve? According to participating in DC / EP Alipay revealed that in the scenario of both the receipt and payment of offline, the first book, and then deducted when you can do security verification.

But “dual offline payment” also faces higher security risks, some people may take advantage of the time difference between the evil, such as the same amount of digital currency to spend several times repeatedly, which in reality is cloned counterfeit currency, while the online world as long as the copy of the digital currency core data, which is the industry said that ” The DoubleSpending Problem” (DoubleSpending). This is the security issue we are most concerned about.

In order to prevent “double-spending”, third-party payment platforms need to verify each transaction, but “double offline payment” can not be verified at the first time, so it is generally only used for public transportation and other small payments to reduce risk.

Application scenarios and principles of dual offline payment

The core of dual offline payment refers to a process of completing business when both the medium and the receiving terminal are offline, most typically the payment business and identity verification. For the payment business, it completes the process of closed-loop transactions by extending the request for payment after the transaction is completed, and at its core, it is a technical solution that enables fast verification of identity and payment.

Its business mechanism has two core points. One is the business mechanism has two features, including the verification and payment; the other is that there is a trust mechanism between the terminal and the medium. In terms of transaction security mechanism, there are three dimensions: (1) one is the amount of wind control, that is, the amount of transactions after double offline; (2) the second is a mechanism for advance and recovery; (3) the third is the credit system.

V. Is the digital RMB bumper to bumper payment safe? Would some random person touch my phone with it and steal my money?

The answer is, definitely not.

The technology behind the digital RMB touch and go payment is actually NFC technology, which is much more secure than QR code scanning.

NFC is a kind of short-range high-frequency wireless communication technology.NFC transmission distance is less than 10 cm, using point-to-point communication, without third-party equipment transit transmission signal.NFC mobile phone supports chip hardware encryption and software encryption, less than 0.1 seconds to complete point-to-point encrypted communication, to ensure payment security.

Will payment be made directly when the phone is touched?

Of course, you can’t just touch the phone and pay directly, after touching the phone, you have to enter the payment amount, as well as enter the payment password or fingerprint to complete the transfer, the steps are similar to the current scanning code payment. Without a doubt, it is more convenient than scanning the code to pay, when the network is bad or the light is bad, it is impossible to complete the payment. It only needs to be touched within 10 centimeters to complete the payment. It’s payment experience and security is better than scanning the code to pay.

Seven, is there any similar case of dual offline technology?

We’ve learned that in scenarios where both receivers and payers are offline, they’ll be credited first and then deducted when they can do security verification.

Think about it, is this the same situation with the bus system? There’s money in the bus card, so you can swipe your card to board the bus without internet.

By analogy, in the case of good network conditions, the amount of money is first loaded into the carrier, IC card or mobile phone, then you can based on IC technology or NFC technology to achieve online or offline card swipe. If online credit card swipe is easy to understand, offline credit card swipe is nothing more than waiting for the network to pass, further settlement with the center.